ECB's Nowotny says additional sets of instruments are necessary

Author: Mike Paterson | Category: Central Banks

QE comments out a few mins ago from the ECB gov council member and Austrian CB gov triggering the euro sell-off

  • it's "quite obvious"
  • new instruments to include structural measures
  • we are clearly missing our inflation target
  • core inflation also below our target

I highlighted the large offers at 1.1500 earlier and this has added to the supply.

Not quite sure what he means by "structural measures". Perhaps related to the "reforms" mantra . Update 07.48 GMT: My theory confirmed

Speaking in Warsaw Nowotny said:

"In my view it's quite obvious that additional sets of instruments are necessary"

All adding to the conjecture that the ECB will extend QE at next week's meeting

EURUSD now down to 1.1445, EURGBP 0.7390 providing a base under cable but struggling to chew through offers around 1.5500

EURJPY 135.40 from 136.30 in a double whammy as USDJPY breaks sown through 118.50-65 support area to post 118.09 in a rush

Not markets for the ill-disciplined trader. Plenty of whipsaws but opportunity too for sure

           ECB's Nowotny - Additional measures required

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